transportation cost & tariff student: name brian o’donnell ... · final end-customer...
TRANSCRIPT
Kristin PedersenBrian O’Donnell
Transportation Cost & Tariff OptimizationStudent: Name Brian O’Donnell, SCM 2019
Student: Kristin Pedersen, SCM 2019Advisor: Tim RussellSponsor: The Carlstar Group
Build a Mixed Integer Linear Programming model to determine optimal product flow and mode selection for all seven market segments that minimizes total cost.
Dramatic changes in tariffs
Volatility expected to continue
Global MFG heavily impacted
Provide a model that informs and enables more dynamic decision making regarding product flow and mode selection for cost minimization
Determined optimal modeling technique to identify the most cost effective product flows Identified six product flow options from manufacturer to final end-customer destination
Methodology
Problem
Background
Key Question
Relevant LiteratureChandra, Charu, and Jānis Grabis. “Mathematical Programming Approaches.” In Supply Chain Configuration: Concepts, Solutions, and ApplicationRiopel, D., Langevin, A., & Campbell, J. (2005). Logistics Systems Design and Optimization
Initial Results
Expected Contribution
Dynamically identify optimal product flow and delivery mode that incorporates changes in demand, tariffs, and transportation costs to minimize total cost.
January 2019 Poster Session
BACK TO KIOSK MENU
Do changes across demand, tariffs, and transportation costs alter decisions on product flow and mode selection?
Rising transportation costs
Product demand fluctuations
The Carlstar Group
Leader in specialty tire and wheels industry
Option #1: US DC Consolidation Option #2: Direct
vs.
LCL, LTL
CL, FTL